Friday, March 03, 2006

On Tuesday, the Minnesota Department of Finance released the February forecast updating the FY 2006-2007 budget.

They reported that the state budget showed an additional $181 million positive balance - on top of the $701 million positive balance reported in November's forecast. With the two positive balances, the state was able to fully repay a temporary accounting shift with $88 million to spare.

The good news about the FY 2006-2007 budget came on top of the FY 2004-2005 budget with a $337 million positive balance. This was the same budget cycle that began with a $4.2 billion deficit back in 2003, which Governor Pawlenty and legislative Republicans resolved without raising taxes.

In total, over two budget cycles Governor Pawlenty tackled $4.855 billion in deficits by setting priorities, spending smarter, and without raising your taxes.

According to the Star Tribune, "Corporate taxes were the biggest driver, with new estimates coming in nearly 10 percent ahead of earlier projections." This is not good news, because those big bad corporations don't actually pay their taxes, you do in the form of higher prices (can you say "rising health care costs?").

Whatever the exact figures, legislators are now salivating over how to spend the 04-05 surplus and the 06-07 projected surplus! The saying, "Hang onto your wallets, the legislature is in session" has never been truer. They need to be reminded whose money it is: yours and mine, not theirs. It's time for the state to issue Jesse Checks again to give us our change back.

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